Thyssenkrupp Sets Sights on European Shipyard Partnerships Amid Rising Naval Demand

By William Wilkes
May 10, 2025 (Bloomberg) — Thyssenkrupp AG’s naval division is on the lookout for shipbuilding allies throughout Europe as fresh submarine contracts push its German facilities to their limits.

Thyssenkrupp Marine Systems (TKMS), the largest naval shipbuilder in Germany, revealed on Thursday that singapore has placed an order for two more Type 218SG submarines, increasing its total to six. This new deal means TKMS’s two shipyards will be operating at near full capacity well into the 2040s, coinciding with a surge in defense budgets across Europe.

“We’re actively exploring partnerships and consolidation opportunities,” saeid TKMS CEO Oliver Burkhard during a recent chat. “There’s a mismatch in capacity utilization across Europe,and we need to adopt a broader European perspective.”

Even though TKMS stands as one of Europe’s top naval builders, it has faced challenges due to insufficient investment from its parent company. Previous attempts at consolidating European shipbuilding efforts have faltered partly because Berlin is hesitant to relinquish control over submarine technology deemed vital for national security.

Germany’s military spending is projected to increase significantly following changes made by the Bundestag that allow for potentially unlimited defense investments. The urgency of this shift was amplified when U.S. Vice President JD Vance expressed skepticism about the transatlantic defense alliance, raising alarms about America’s pivotal role in safeguarding crucial maritime routes like the Baltic Sea—home to critically important Russian naval installations.

With its primary production facility located in Kiel, TKMS is also revamping another site along Germany’s northeastern coast in Wismar. The company took over this yard last year after MV Werften went bankrupt; it was previously known for cruise ships but is now being transformed into a submarine manufacturing hub.

“I’m not currently looking at adding a third yard,” Burkhard mentioned but acknowledged that if demand continues on this upward trajectory, they might have no choice but to consider it down the line. “Wismar still has some room left for expansion.”

Thyssenkrupp plans to partially list TKMS later this year; Burkhard confirmed that these plans are still moving forward despite market fluctuations triggered by U.S.-China trade tensions under former President donald Trump.

“It’s all proceeding as was to be expected,” he stated confidently while noting that investor interest remains robust within this unique sector of defense manufacturing.

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